Mercedes-Benz to Raise Prices in India

By Santanu Choudhury

NEW DELHI–Daimler AG’s Mercedes-Benz luxury-car unit said Tuesday that it will increase its vehicle prices in India by between 1% and 3% from Jan. 14 to counter higher costs.

Mercedes-Benz India Pvt. Ltd. said also that it sold 7,138 vehicles in 2012. The company didn’t provide its sales data for the previous year.

“Rising inputs cost, volatility of the rupee-euro, high interest rates and other associated factors have put significant pressure on us,” said Eberhard Kern, managing director and chief executive at Mercedes-Benz India.

The company said it will increase the price of its B-Class hatchback by 1.0%, C-Class and E-Class sedans by 1.5% each and its S-Class sedan by 3.0%.

Luxury-car maker Audi AG last week said it would increase the prices of all its vehicle models in India with effect Tuesday. BMW AG also plans to raise its vehicle prices this month.